Tag Archive: financial advice

Managing your wealth regardless of how big or small, is a complicated task. A financial advisor assists you to keep your money safe and also make it work for you. Before you begin working with your chosen financial advisor ensure that you ask them the following important questions:

What certifications do you have?

You need to be aware of what licenses and certifications your financial advisor possesses. Most of the top financial advisors are certified public accountants, consultants, fund specialists or analysts. There are some who even have a juris doctorate and insurance licenses. Even though each individual has to begin somewhere, you desire would be to work with a firm that has substantial experience in the financial field.

What safeguards are in place to protect assets from fraud?

Your assets should be under the protection of a reputable custodian. When you inquire about safeguards, you should ensure that you ask about any infractions the financial advisor has received previously, either with the firm or as a person. He or she should be a fiduciary in order to offer you the best services. Advisors with a strict code of ethics usually have standards that they share with their clients. However, regardless of how high their standards are, they should be in compliance with the state and regulatory agencies, financial industry regulatory authority and the security’s exchange commission.

What are your fees?

Your financial advisor should be completely transparent when it comes to fees. He or she has to disclose his or her fees structure, so as to understand how you will be paying. Some advisors are fee-only, implying that they offer a flat rate for services that are provided. Some financial advisors charge a commission fee. This implies that they make money from each product that you buy to assist your investments grow. It is vital to know which one you are working with or if you are employing the services of an advisor who charges a fee on top of earning commissions.

What access do you have to earning reports?

Your financial advisor should have direct access to the top holdings of where your investments are. He or she should be in a position to inform you immediately what the earnings report is anytime you ask for them. At the very least, your financial advisor should be able to provide you with knowledge regarding your holdings before any assets or investments. By being educated about the available options and what assets are invested, you will be in a position to better understand what the consultant suggests.